From sladen.com.au: In 2024, significant developments in the franchising sector included a Federal Court ruling holding franchisors liable for their franchisees’ non-payments of employee entitlements, emphasizing the importance of compliance with Fair Work laws.
The ACCC announced enforcement priorities that affected franchisors, highlighting issues like misleading advertising and unfair contract terms.
The upcoming changes to the Franchising Code of Conduct set to begin on April 1, 2025, will introduce provisions requiring franchisors to compensate franchisees in certain termination scenarios, and ensure franchise agreements allow for a reasonable opportunity to achieve a return on investment.